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Calgary-based Energy giant Suncor will slash 1,000 jobs and curb its capital spending by $1 billion in 2015 to meet the challenge of plummeting oil prices.

Reductions of $600 million to $800 million in sustainable operating expenses will also be phased in over the next two years to offset inflation and growth, the company said in a statement Tuesday.

With West Texas crude hovering well under $50 a barrel, Suncor president and CEO Steve Williams said the cuts will ensure the largest player in Alberta’s oilsands will be able to weather a looming economic storm.

“Our integrated model and strong balance sheet have positioned us well for the price downturn,” he said.

“Cost management has been an ongoing focus, with successful efforts to reduce both capital and operating costs well underway before the decline in oil prices.

Of the 1,000 jobs to be cut from Suncor’s workforce, most will be contract workers, though some employee positions will be slashed as well from the company of about 14,000.

A hiring freeze has also been imposed for jobs that aren’t critical to operations and safety.

Major construction projects already on the books, including the Fort Hills mine near Fort McMurray and Hebron offshore field in Newfoundland, will go forward as planned, and are slated to come online as scheduled in late 2017

But some projects that have yet to be sanctioned will be deferred, Suncor said, such as MacKay River 2 thermal oil project and the White Rose extension from the east coast.

The company will also reduce its discretionary spending.

All told, the billion dollar slice from Suncor’s capital program will reduce its spending plan for 2015 to between $6.2 billion and $6.8 billion.

The company’s plan is based on a forecasted average price for West Texas Intermediate at $59 per barrel, even as prices continue to plunge.

Suncor’s announced cuts come one day after Canadian Natural Resources Ltd. (CNRL) scaled back its planned capital spending by $2.4 billion.